GREAT WESTERN RECLAMATION, INC.- STOCK ASSIGNMENTS

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The Honorable Lorin Griset May 25 , 1972 Page Two operation of Great Western Reclamation, Inc. , thereby permitting the employment of more complex and efficient equipment. Great Western Reclamation, Inc. , in connection with its present construction plans for the property it recently acquired on Grand Avenue in Santa Ana, has done certain preliminary development and entered into negotiations in connection with the recycling of paper products . One of the obstacles to the full development of a recycling operation has been the substantial amount of capital required in such a venture. SCA Services , Inc. , is fully aware of the mass problems arising from the mounting pollution threats and the steady decline in the availability of property for land fill purposes . Said company has , therefore, been experimenting with recycling methods and has been studying alternative ways of handling the disposal of solid waste, a situation of growing concern. The transfer of ownership of the shares of Great Western Reclamation, Inc. , will enhance the probabilities of development of recycling methods and in particular the development of a recycling operation related to paper products . It should be kept in mind that Great Western Reclamation, Inc. , will continue to be subject to the close control of the City of Santa Ana following the transfer of the shares . Subsection (e) of Section 3 of the Specifications relating to refuse collection services requires that Great Western Reclamation, Inc. , cure any default within five days . Great Western Reclamation, Inc. ° s failure to cure or remedy any default within the five-day period results in termination of the contract. In addition, if, in the opinion of the Director of Public Works of Santa Ana, Great Western Reclamation, Inc. , should continue to neglect or refuse to comply with the Regulations of the Director and the contract, the City may, at its option, terminate the contract. SCA Services, Inc. , is fully aware of this complete control which rests in the City of Santa Ana and not only accepts the responsibil- ities which are therefore imposed upon Great Western Reclamation, Inc. , but also is fully capable of meeting those responsibilities . It is submitted that the consent to transfer of the shares of Great Western Reclamation, Inc. , by the shareholders to SCA Services, Inc. , is in the best interests of the City of Santa Ana, in that SCA Services , Inc. , is a responsible organization, adequately financed, with full technical knowledge and can and will provide the necessary direction to Great Western Reclamation, Inc. , in the performance of its obliga- tions under its contract with the City of Santa Ana. Furthermore, 7